Research Indicates Bright Outlook for Concrete, Aggregates Industry

While weather-related woes and higher labor, freight and material costs are eating into margins, a significant boost in infrastructural and construction spending should continue to favor the industry.

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Zacks Rank

Research firm Zacks Rank predicts a promising future for the concrete and aggregates industry, which it defines as manufacturers, distributors and sellers of construction materials like aggregates, concrete, gypsum wallboard, recycled paperboard, concrete blocks, ready-mix concrete, and oil and gas proppants.

According to Zacks Rank, three major themes will influence the industry’s future, which include:

  • Increased construction activity and spending.
  • Well-chalked-out acquisition plans to enhance domestic and international portfolios and a focus on reducing costs and maximizing operating efficiency.
  • A shortage of skilled laborers, rising wage costs and increasing material and transportation expenses.

The industry currently carries a Zacks Industry Rank of 83, which places it in the top 32% of more than 250 Zacks industries. A Zacks Industry Rank is calculated by averaging the Zacks Rank for all stocks within a specific industry. Zacks Rank claims that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.